This "ground-up" approach solves the problem of maturity mismatch when constructing
credit-spread indices.
The country's life insurers are also increasing their investments in foreign
credit-spread products to improve yields.
The optimal strategy for managing a cash balance plan's assets involves purchasing credit assets to achieve the appropriate
credit-spread hedge (determined within the context of the overall portfolio), and then investing the rest of the portfolio in Treasury securities and long and short interest rate derivatives that match the plan's specific key interest rate duration sensitivities.
Using a
credit-spread discipline, investment managers might buy an industrial bond when spread levels are wide and it's attractively priced from that standpoint, LoPorto said.
Credit-spread spikes in 1990 and 1999 coincided with the beginning of multiple-year runs of small-cap outperformance.
The
credit-spread program is an automated system used to prepare a detailed credit analysis of a commercial company's financial statement.
